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Credit Pacific Service Union The Pacific Lumber Co. on Monday seized on a judge's criticism of a fraud suit being pressed against the company, saying it shows the case has little chance. The District Attorney's office, at the same time, reveled in its success.

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Credit First Service Union Palco President and CEO Robert Manne pointed out Humboldt County Judge Christopher Wilson's critical remarks, and said he hopes the DA carefully weighs whether to proceed.

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Card Credit Mobile Service The judge's 28-page Friday ruling upheld the central points in the case, but did strike down requests for an injunction on logging and for restitution of $300 million escrowed during the 1999 Headwaters Forest deal.

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Card Credit Discover Service While Friday's ruling cleared the way for the case to proceed, it also underscores some of the difficulties Assistant District Attorney Tim Stoen might face.

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Credit Public Service Union In his ruling, Wilson wonders how Stoen's request for relief won't unravel the entire Headwaters Deal. That assertion, Wilson writes, isn't without consequence. But the DA's office should have to prove that's the case, he writes.

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Card Credit Processing Service It seems apparent Wilson considers that a rough road. He writes throughout the ruling that proving elements of the unfair competition case is "a tall order," and a "rather prodigious stretch."

Center Credit Service Union "If you boil down the 28 pages," Manne said in a statement, "he told the district attorney, in so many words, that the only way he could proceed would be to jack up the radiator cap and run a new car under it."

Card Credit Service Wireless For all the judge's editorial comments, Stoen is unfazed, since Wilson ruled largely in the DA office's favor.

Credit Security Service Union "He may call it unwieldy," Stoen said, "but that's not my problem."

Credit Report Service Stoen said the liability in the case is easily proven, and said he thought Wilson was cushioning the blow he dealt against Palco by adding reflective comments.

Blogspot Com Christian The district attorney alleges that Palco knowingly submitted a bogus analysis of logging-related landslides on the eve of the Headwaters deal approval. That led the California Department of Forestry to decide additional timber could be cut without environmental harm, the suit claims.

Christian Counseling Credit The $480 million deal to transfer the Headwaters Forest and other groves to the public -- and put logging and sustained yield restrictions in place -- was never sent out to citizens again for review.

Credit Federal Service Union The case touches on tricky legal questions. One concerns whether the California Department of Forestry, in approving the plan, acted like a court, in a quasi-judicial capacity.

Credit Monitoring Service That question is now going before the state Supreme Court, after the 1st District Court of Appeals in San Francisco in March overruled Humboldt County Judge Michael Brown. He ruled in another case that the North Coast Regional Water Quality Control Board didn't have authority to impose regulations on Palco outside the scope of state logging plans.

Credit Division Service It has also been raised in cases like the Stafford landslide and Elk River residents' cases against PL.

Card Credit Online Service Wilson seems to consider the process to approve the Headwaters deal as quasi-judiciary.

Consumer Counseling Credit Inc The other is PL's assertion that companies can lie when petitioning the government, the Noerr-Penningtion Doctrine. That was the key element in PL's request to have the case thrown out.

Card Credit Fleet Service Wilson said that doctrine doesn't apply to the DA's case, but wrote that the district attorney has to show the alleged fraud deprived the government of its legitimacy.

Card Consolidation Credit Activist and physician Ken Miller -- whose assistance in the early stages of the case drew fire during the attempted recall of District Attorney Paul Gallegos -- said he thinks the ruling may end up in the state Supreme Court. But he felt the opinion was largely positive.

Credit Free Online Report "In an effort to cut the baby in half," Miller said, "he's sort of giving Palco some lip service, but at the same time he's telling Tim he has a case if you do it right."

Credit Federal First Service Stoen said he'll review the ruling thoroughly and decide on a course of action, though at this point he intends to steer away from asking a higher court for the injunction Wilson ruled against.

Consumer Credit Service Palco gave no indication if it would appeal any of the elements in the case.

Center Credit Family Service By John Driscoll
The Times-Standard - 5/4/2004

Topic: Forests & Trees

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